Buying property in Spain

Buying property in Spain is a significant investment and an important step, whether it concerns a holiday home, a permanent residence, or an investment. The process differs from that in Sweden and involves several legal, tax, and administrative steps that must be handled correctly.

We assist Swedish clients in completing property purchases in Spain, focusing on legal security, correct structure, and risk mitigation throughout the entire process.

How does a property purchase in Spain work?

A real estate purchase in Spain takes place in several stages and requires the buyer, either personally or via a legal representative, to ensure that necessary checks are carried out before the purchase is finalized. There is no comprehensive system where an external party is automatically responsible for identifying all legal risks.

Property purchases in Spain usually involve:

Property reservation

An initial reservation can be made to take the property off the market. This step is not regulated by law, and the terms vary depending on the agreement.

Private purchase agreement (arras agreement)

A private agreement is often entered into in the form of an arras agreement. There are different types of arras with different legal effects, the most common being ‘arras penitenciales’ under Spanish law, which means that the parties can withdraw from the agreement in exchange for financial compensation.

Legal due diligence

The buyer should verify the property’s legal status, including ownership rights, registered encumbrances, debts linked to the property, and consistency between the land registry and actual use.

Final purchase through a notarial deed

The purchase is formalized through a notarial deed (escritura pública). The notary checks certain formal aspects but is not responsible for a full legal audit of the property.

Registration in the Land Registry

After the purchase, ownership can be registered in the Registro de la Propiedad. Registration is not mandatory, but it is crucial for protecting the buyer against third parties.

Unlike in Sweden, there is no system where a real estate agent or authority is responsible for checking all legal risks on behalf of the buyer. The responsibility for due diligence effectively lies with the buyer.

How we assist you

We offer advisory services and practical support throughout the entire purchasing process:

• Legal due diligence of the property
• Verification of title deeds, debts, and registered encumbrances
• Review and drafting of contracts
• Coordination with the notary and relevant authorities
• Overview of taxes and costs associated with the purchase
• Representation via power of attorney when necessary
• Guidance on administrative measures after taking possession

The process

1. Initial review

We analyze the property and your situation, and review relevant legal and tax conditions, including ownership structure, financing, and any cross-border aspects.

2. Legal due diligence

We review the property’s legal status, including the title deed in the Registro de la Propiedad, any encumbrances (e.g., mortgages), debts linked to the property (e.g., community fees), and consistency between the land registry and actual use. When necessary, urban planning conditions and permits are also considered.

3. Contracts and preparations

We ensure that terms and agreements (e.g., arras agreements) are correctly drafted and adapted to the situation, and that the right type of agreement is used. We verify that necessary conditions are met before completion, including financing, NIE numbers, and payment structure.

4. Completion at the notary

The purchase is formalized through a notarial deed (escritura pública). The notary verifies identity, authority, and certain formal aspects. Under Spanish law, ownership is considered to transfer through the parties’ agreement and delivery (tradition), while the notarial deed serves as evidence and enables registration.

5. Post-completion and registration

After the purchase, the payment of applicable taxes (e.g., ITP or IVA and AJD) is handled, as well as registration in the Registro de la Propiedad. Registration is not mandatory but is crucial for protecting ownership rights against third parties. Administrative measures linked to the property are also handled as needed.

Costs when buying property in Spain

When purchasing property in Spain, costs are incurred in addition to the purchase price:

• Transfer tax (ITP) or VAT (IVA), depending on whether it is a resale property or a new build
• Notary fees
• Registration fees
• Legal advisory services
• Any bank costs associated with financing

The total cost level is often in the range of approximately 10 to 15 percent of the purchase price, but varies depending on the region, price level, and structure.

Key risks to avoid

A property purchase without sufficient due diligence can involve significant risks:

• Debts linked to the property, such as unpaid fees to the homeowners’ association (comunidad de propietarios) or certain taxes
• Incorrect, incomplete, or outdated information in the Registro de la Propiedad
• Discrepancies between the Land Registry (Registro) and the Property Cadastre (Catastro) or the actual construction
• Unauthorized, unregistered, or not fully legalized constructions according to current building permits and planning regulations
• Taxes and fees linked to the property (e.g., IBI) that have not been handled correctly and may affect the buyer

Identification and management of these risks should occur before binding agreements are entered into.

When do you need help?

This service is relevant for you if you:

• Are a Swedish citizen looking to buy property in Spain
• Are making your first purchase in Spain
• Want to minimize legal and financial risks
• Need to handle the purchase remotely
• Want support throughout the entire process

Why choose us?

• Experience with Swedish clients in Spain
• Knowledge of both Spanish and Swedish law in relevant areas
• Comprehensive advisory services in law, tax, and administration
• Structured process throughout the entire transaction

Take the next step

Do you want to complete a property purchase in Spain with correct legal handling and minimized risk?

Contact us for an initial review of your situation and the property in question.